MSE News: Energy prices still heading up despite Government cuts, experts say

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
edited 10 February 2014 at 12:44PM in Energy
"Energy firms have promised to freeze prices after the Government cut green levies, but prices are set to rise long-term..."
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Energy prices still heading up despite Government cuts, experts say

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  • jobdone1
    jobdone1 Posts: 841 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    You are very right. Edf energy new blue product higher price SHOCK not. So we are being fleeced this must stop. But who has the bXXXs to do that.

    I wait to see
  • Consumerist
    Consumerist Posts: 6,310 Forumite
    Name Dropper First Post First Anniversary
    At least the suppliers have been robbed of one of their main excuses for the price rises. If prices go up whilst the wholesale gas price remains flat, the spotlight will turn on the network operators where it has always deserved to be.

    Ofgem have some influence over the network operators' charges so we'll see whether they have any backbone. I wouldn't hold my breath for Ofgem to help consumers, however.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    Assuming 16,500kWh gas, and 3,300kWh, the old medium usage, I have been on short term fixes rising from £899 to £1,142, over a five year period. So it's £243 more per year compared to five years ago for average consumption. It's 4.8% compounded over five years.

    If we assume 5% increase per year, still assuming 16,500/3,300kWh usage, the annual energy bill will be £1,484. In the absence of a crystal ball, that is what I plan for. It does give a guidance on what is a reasonable budget for insulation. £10,000 would be too much, but I would definitely spend some more money on adding insulation.
  • 50Twuncle
    50Twuncle Posts: 10,763 Forumite
    Photogenic First Anniversary Name Dropper First Post
    Did anyone honestly expect a spineless government to do anything other than "advise" the energy companies to comply ?
    We are destined for annual rises, at over inflationary rates - forever - and no amount of swapping suppliers will reduce this....
    Still - human habitation on the planet will end soon - due to global warming causing weather changes - so nobody will be around to complain - so bring it on !!!
  • minislim
    minislim Posts: 357 Forumite
    First Anniversary Combo Breaker First Post
    the main excuse for price rises is usually the wholesale price.

    and theres been suspisions about that market not being quite as competative as it should be.

    sounds to me like the enerygy market equivalent to the libor scandal.
  • Yes, we all complain about energy costs but with 7 billion people on the planet and the demand for gas by China and India increasing big time the wholesale prices will only go in one direction. You don't need experts to tell you that fact.
    Britain is too dependent on imported gas from Norway, Russia and The Middle East for electricity generation.
    This not only affects the price on the world market but is not a sound strategic plan as the country is vulnerable to being cut off from the world gas supply.
    Over the coming years we must invest in more coal/nuclear/renewables right here in the UK to meet the increasing demand for power.
  • This

    "I wouldn't hold my breath for Ofgem to help consumers, however."

    Ofgem is part of the problem rather than part of the solution.
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